Business Environment Quiz

What is the BEST definition of a business environment?

• Only the company's employees and managers

• All internal factors affecting a business

• Both internal and external factors influencing business operations

• Only government policies related to business

Which of these is an INTERNAL factor for a business?

• New tax policies

• Employee training programs

• Inflation rates

• Changes in consumer fashion trends

Rising inflation in Sri Lanka is an example of which PESTEL factor?

• Political

• Economic

• Social

• Technological

A sudden government ban on plastic packaging affects businesses through which factor?

• Legal

• Technological

• Internal management

• Company culture

Which is MOST likely an opportunity created by technological changes?

• Higher import taxes

• E-commerce expansion

• Employee turnover

• Strict labor laws

How does a strong company culture (internal factor) help a business?

• Reduces competition

• Improves employee motivation and productivity

• Lowers interest rates

• Changes weather patterns

A tourism business in Riverston faces low visits during monsoon season. This is a/an:

• External environmental factor

• Internal management issue

• Financial resource problem

• Technological challenge

Which PESTEL factor includes population demographics?

• Political

• Economic

• Social

• Environmental

What should a business do to adapt to external changes?

• Ignore them

• Conduct regular environment scans

• Only focus on internal issues

• Blame competitors

MAS Holdings investing in worker training is addressing which type of factor?

• External economic

• Internal human resource

• External legal

• Internal political